Report: Flip It to Fix It

Flip It to Fix It:An Immediate, Fair Solution to State Budget Shortfalls

MAY 25, 2011: At the core of the budget crisis facing states are regressive state tax structures that are unfair, unsound, and unsustainable by design. A report released today by United for a Fair Economy provides a sensible solution: inverting the state’s current tax structure.

To schedule an interview with the authors of the study and/or representatives from state watchdog groups, please contact Shannon Moriarty at smoriarty@faireconomy.org or (617) 423-2148 ext. 108.

Key Findings:

Every state has a regressive tax structure that would benefit significantly from a direct inversion into a progressive structure.

An inverted tax structure for every state would raise a combined $490 billion in new revenue, immediately eliminating state budget deficits.

A cuts-only approach to state budget deficits is shortsighted—imposing immediate harm on families, while dampening economic recovery and compromising the future competitiveness of the American workforce.

To achieve an inverted, progressive structure, states must establish or improve upon the graduated personal income tax while reducing reliance at the state and local level on regressive sales, property, and excise taxes.